The number of bank employees implicated in fraudulent activities in Ghana rose sharply in 2024, signaling deepening internal control challenges within the financial sector, according to a new report from the Bank of Ghana.

The report, released this week, recorded 365 staff-involved fraud cases, marking a 33% increase from the 274 cases reported in 2023. The central bank cited cash theft and suppression as the predominant forms of internal fraud, with 274 employees directly involved in such schemes.

While overall fraud incidents across banks and specialized deposit-taking institutions (SDIs) increased 5% to 16,733 cases, the value of fraud involving forgery and document manipulation saw a dramatic surge. The total value at risk from these schemes jumped nearly eightfold to GH¢53.5 million, compared to GH¢6.9 million the previous year.

Identity theft also posed a growing threat, with associated losses increasing nearly ninefold, though specific figures were not disclosed in the report.

Despite the rise in internal fraud, only 43% of implicated staff were dismissed, largely due to protracted legal and disciplinary proceedings. The Bank of Ghana expressed concern over the “consistent and steady increase” in insider fraud and called on financial institutions to strengthen employee vetting and compliance protocols.

“The growing trend in staff-related fraud cases underscores the urgency of implementing more robust internal controls and fostering a culture of accountability,” the report stated.

The financial sector continues to face significant challenges in asset recovery. Institutions were able to recover only GH¢3 million of the GH¢83 million estimated to be at risk during the period.

The central bank urged banks and SDIs to adopt a zero-tolerance approach to internal fraud and called for enhanced coordination between financial institutions, law enforcement, and regulators in tackling the issue.

Source:TheDotNews